“Our people are our most important asset.” “The knowledge, skills and commitment of our people is our key differentiator.” We often hear these clichés, but for many organizations, they are truer than ever.
Pick up any company’s annual report, or skim any organization’s website, and you’ll find significant reference to the importance of people, culture and employee experience. At the same time, new digital paradigms are changing business models and transforming the way we attract, retain and engage talent.
Yet many HR initiatives that will help address these challenges do not get funded or get cut when budgets are tight. The result is a perilous situation: CEOs and CFOs increasingly expect HR to deliver business results and support rapid organizational change, yet HR departments have been suffering for years from a lack of investment in the tools and capabilities they need.
So how can we increase the chance of securing approval for an HR transformation project?
The answers lie in the way a case for change is constructed and communicated. When working with organizations to build the case for HR transformation there are three common pitfalls I see:
- Framing the case for change too narrowly (i.e., being too HR-centric) versus framing around the broader priorities, challenges and drivers of the business.
- Over reliance on emotion and HR jargon when presenting benefits vs demonstrating a rigorous quantitative fact base couched in language that resonates across all functions.
- Failing to secure buy-in from key stakeholders who will make the funding decision or significantly influence it.
I recommend an approach that looks beyond the borders of HR to tell a robust story that wins the hearts and minds of key stakeholders. It involves going beyond the traditional business case to what I call a value case. Here are the six key steps in that approach.